When faced with decisions about retirement, one of the most common ones is likely to be how you want to receive your super – whether you choose to receive it through regular pension payments, withdraw it as a lump sum, or like many people, maybe a combination of both.
There’s generally no right or wrong answer here – it depends on your personal circumstances, your retirement plans and what the best strategy is for you.
Let’s take a look at some of the features of both options – a retirement pension (or income stream) compared with a lump sum benefit.
From a tax perspective, all super (whether it’s paid as a pension or a lump sum) is tax-free after you turn 60. If you’re under 60, tax is generally payable on the taxable component of your super.
When you take the above choices and factors into account, together with the potential tax implications and possible effects on Age Pension or other government entitlements, it’s essential to get the right advice before finalising any decisions. As a Group Super member, there are different advice options available to you as part of your account features.Find out more
Retirement can take on different meaning from person to person, and one of the biggest challenges is how to fund your retirement. This feature provides detailed information to help you plan for your future. (Source: ASIC MoneySmart)
Try this handy calculator to help you determine how long you expect your pension to last and ways to make it last longer using different options. (Source: ASIC MoneySmart)